A day before the supposed agreement on the fate of WestLB, Apollo Global Management was reported to be the last bidder for the bank’s real estate finance unit WestImmo. The offer was headlined at $567m, with WestImmo having reported earnings of €94.8m in 2010. It claims the results were hit by the forced sale, which was a condition of WestLB’s access to state money to save it during the financial crisis.
For what it’s worth, agreement on the method for the break-up of WestLB was reported on Friday, but this was followed Saturday with a warning that local politicians might try to scupper the deal. Frankly, the fact that politicians have such a large say in the matter may be one of the best arguments for a radical change. They always have voters to please, and tight elections tend to bring out everyone’s less-than-rational policy decisions.